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I wonder what's going on here. My latest wild conspiracy theory (for which I freely admit that I have no evidence other than my own paranoia) is that some Google employees are running private Adwords accounts for their own benefit and abusing their position by shutting down innocent customers whose business intrudes on their turf...
Things like this happen because Google's competition has been asleep at the wheel for way too long. There is some hope in MSFT's Vista-->Live-->Adcenter combo. If it brings some real competition in PPC, maybe Google will be less quick to turn down revenue from good customers.
If you have been tracking your referrers, I'd suggest contacting the better publishers directly to inquire about banner or text ad placement. It will take some of the sting out of the volume loss, and it cuts out the middleman's (Google's) margin so ROI tends to good.
The good news is that you are an advertiser. There are lots of places willing to take your advertising money. If this is your big time of year I'd spend my time looking at a different advertiser so I could get back up and running to capacity AAP. Then I would get with Google and fix whatever they think happened.
We have requested, but not yet received proof of our "supposed" violation.
Stingray9, replying to the most recent email you received is exactly the right thing to have done, and may well have resulted in this being cleared up already. That said, because this case does seem unusual, please feel free to 'sticky mail' me with your account details, and I will make sure the right folks take a look. (Being new to WebmasterWorld, you may not be aware that I am an AdWords employee.)
We never received a single email accusing us of any violation of Google policy.
As an aside, it's worth checking your 'spam' filters/folders to see whether any emails from the AdWords team may have been automatically directed there.
These items are for selling products in stores (hooks, racks, stands, etc.) and cannot in the wildest stretch of the imagination be considered porn.
unless of course you're looking for a hooker with a nice rack for a one-night stand... sorry, I couldn't resist :)
Good News! After five emails my account was reactivated today.
No appology. No response to my request for the exact reason my campign was cancelled. No offer to compesate me in any way. No reason for me not receiving any prior notification from Google.
What a way to run a business.